HSBC Exec Warns of AI 'Success Theater' in Finance
Wednesday, Oct 9, 2024 5:00 am ET
1min read The financial sector has been increasingly embracing artificial intelligence (AI) to boost productivity and operational efficiency. However, a senior executive at HSBC has cautioned that there is a lot of "success theater" in AI implementations, with many companies struggling to deliver tangible results. Edward J Achtner, the head of generative AI at HSBC, made these remarks at the CogX Global Leadership Summit, alongside other AI leaders from rival banks and venture capital firms.
Achtner outlined that HSBC has over 550 AI use cases across its business lines, ranging from fighting money laundering and fraud to supporting knowledge workers with generative AI systems. The bank has partnerships with companies like Google to leverage AI technology for anti-money laundering and fraud mitigation. However, Achtner emphasized the need to differentiate between AI 'success theater' and genuine advancements.
To evaluate the authenticity and impact of AI implementations in finance, HSBC uses specific criteria. The bank focuses on AI's ability to deliver tangible results, improve customer experience, and enhance operational efficiency. HSBC also considers the ethical and responsible use of AI, ensuring that it aligns with the bank's principles for the ethical use of data and AI.
When considering AI investments, HSBC balances the potential risks and benefits. The bank acknowledges the incredible potential of AI but also recognizes the underlying risks, particularly with generative AI. To mitigate these risks, HSBC approaches the underlying risk with respect to generative AI differently, ensuring that it represents a clear opportunity for productivity gains while managing the associated risks.
Regulatory oversight plays a crucial role in HSBC's assessment of AI success versus "success theater" in finance. The bank works closely with regulators to ensure that its AI implementations comply with relevant regulations and standards. HSBC also engages with other financial institutions to stay informed about AI trends and avoid "success theater" by learning from their experiences and best practices.
In conclusion, while AI holds immense potential for the financial sector, it is essential to differentiate between genuine advancements and "success theater." HSBC's approach to evaluating AI implementations, balancing risks and benefits, and engaging with regulators and industry peers ensures that the bank remains at the forefront of ethical and responsible AI development in finance.
Achtner outlined that HSBC has over 550 AI use cases across its business lines, ranging from fighting money laundering and fraud to supporting knowledge workers with generative AI systems. The bank has partnerships with companies like Google to leverage AI technology for anti-money laundering and fraud mitigation. However, Achtner emphasized the need to differentiate between AI 'success theater' and genuine advancements.
To evaluate the authenticity and impact of AI implementations in finance, HSBC uses specific criteria. The bank focuses on AI's ability to deliver tangible results, improve customer experience, and enhance operational efficiency. HSBC also considers the ethical and responsible use of AI, ensuring that it aligns with the bank's principles for the ethical use of data and AI.
When considering AI investments, HSBC balances the potential risks and benefits. The bank acknowledges the incredible potential of AI but also recognizes the underlying risks, particularly with generative AI. To mitigate these risks, HSBC approaches the underlying risk with respect to generative AI differently, ensuring that it represents a clear opportunity for productivity gains while managing the associated risks.
Regulatory oversight plays a crucial role in HSBC's assessment of AI success versus "success theater" in finance. The bank works closely with regulators to ensure that its AI implementations comply with relevant regulations and standards. HSBC also engages with other financial institutions to stay informed about AI trends and avoid "success theater" by learning from their experiences and best practices.
In conclusion, while AI holds immense potential for the financial sector, it is essential to differentiate between genuine advancements and "success theater." HSBC's approach to evaluating AI implementations, balancing risks and benefits, and engaging with regulators and industry peers ensures that the bank remains at the forefront of ethical and responsible AI development in finance.
